From the SGDP website:
"The Smart Grid Demonstration Program (SGDP) is authorized by the Energy Independence and Security Act of 2007, Section 1304, as amended by the Recovery Act, to demonstrate how a suite of existing and emerging smart grid concepts can be innovatively applied and integrated to prove technical, operational, and business-model feasibility. The aim is to demonstrate new and more cost-effective smart grid technologies, tools, techniques, and system configurations that significantly improve on the ones commonly used today.
SGDP projects were selected through a merit-based solicitation in which the U.S. Department of Energy (DOE) provides financial assistance of up to 50% of the project’s cost. Note that SGDP projects are cooperative agreements, whereas the Smart Grid Investment Grant projects are grants. Additional information about the original Funding Opportunity Announcement can be found in the SGDP Funding Opportunity Announcement.
Two types of smart grid projects were selected for the SGDP. One includes regional smart grid demonstrations to verify smart grid viability, quantify smart grid costs and benefits, and validate new smart grid business models at scales that can be readily replicated across the country. The second includes energy storage technologies such as batteries, flywheels, and compressed air energy storage systems for load shifting, ramping control, frequency regulation services, distributed applications, and the grid integration of renewable resources such as wind and solar power.
The program consists of 32 projects in the two areas: Smart Grid Regional Demonstrations (16 projects) and Energy Storage Demonstrations (16 projects). The total budget for the 32 projects is about $1.6 billion; the federal share is about $600 million."
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